The economic potential of first hybrid rice variety (KADARIA 1) adoption in Malaysia - Economic and Technology ...

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Economic and TechnologyHairazi
                        Management     Review, Vol. 16(2021): 21 – 32
                               Rahim, Mohd Solihen Jamal, Engku Elini Engku Ariff and Syahrin Suhaimee

The economic potential of first hybrid rice variety (KADARIA 1)
adoption in Malaysia
(Potensi ekonomi penggunaan varieti pertama padi hibrid (KADARIA 1) di
Malaysia)

Hairazi Rahim*, Mohd Solihen Jamal**, Engku Elini Engku Ariff* and Syahrin Suhaimee*

Keywords: KADARIA 1, hybrid rice cultivation, cost benefit analysis (CBA), hybrid seed production,
partial budgeting

Abstract
The latest innovated hybrid rice known as KADARIA 1 was released and been
evaluated in term of yield performance at selected granary areas in Peninsular
Malaysia. Though this advanced technology of variety was developed for
more than 30 years in other countries, it is relatively new in Malaysia as the
technology recently have been explored in less than 10 years. Hybrid type offers
a lot improvement in rice yield performance, therefore many countries invested
extensively in developing more advanced hybrid seed packages for their farmers.
It is notable that the cost of hybrid seed production was higher as compared to
the inbred variety type. In addition, the stagnant profit margin due to the low
technical efficiencies and decreasing return to scale of elasticities in number of
national granaries as well as increasing in production costs in rice cultivation
put some critical consideration for new alternatives to be explored. Therefore,
this study attempt to determine the potential benefits if hybrid type rice is to be
adopted in those granaries since the first hybrid rice variety has been successfully
developed namely KADARIA 1. However, this study found that the initial efforts
to put hybrid in granaries are quite difficult since the average yield produced
(7.32 tonnes/ha) were not significantly different in comparison to the inbred
type (6.23 tonnes/ha). Further, the benefit cost ratio (BCR) was not favorable if
farmers happened to adopt KADARIA 1 for their farms. The benefit’s margin is
plummeted as soon as the hybrid rice price is not subsidized at RM15.00/kg from
original estimated commercial price at RM22.29/kg, which implies the need for
the government to subsidize the seed when farmers opted to grow hybrid. Even
though the yield performance was not significant as evaluated in this study, the
exploration in the development of the hybrid rice is undeniably vital considering
the ability of this variety type is more resistant to the pest and diseases. The
study found that hybrid use in both cultivation and seed production can be
potentially implemented to the granaries if few requirements and improvements
are to be met. It can be done either through the significant increases in yield
performance or producing the hybrid’s seeds economically; or both.

*Socio-Economy, Market Intelligence and Agribusiness Research Centre, MARDI Headquarters,
Persiaran MARDI-UPM, 43400 Serdang, Selangor
**Paddy and Rice Research Centre, MARDI Headquarters, Persiaran MARDI-UPM, 43400 Serdang, Selangor
E-mail: hairazi@mardi.gov.my
©Malaysian Agricultural Research and Development Institute 2021

                                                                                                     21
Introduction                                       area and labor were not contribute enough to
Guaranteeing the supply of food through            the increase in yield anymore (Abiola et al.
increased productivity in agricultural             2016; Rahim et al. 2019).
production was in national agenda as                     Although the increase of certain
emphasized since the 9th (9thMP) until the         inputs significantly affected the increase
11th Malaysia Plan (11thMP). For almost            of yield per hectare in particular granaries,
three decades, various efforts have been           the overall trade-off value was found to be
made by the government to achieve this             worthless even with the collective increase
goal. One of the important commodities that        of these input units (Mailena et al. 2014;
was always been given the priority in every        Rahim et al. 2020). Without intervention
government policy was rice. As the staple          of technological advancement, the rice
food for Malaysians, it is vital to ensure the     production which was strongly related to the
sustainability of this commodity especially        efficiency and productivity level cannot be
through the incentives and encouragement in        intensified (Parichatnon et al. 2017). Since
adopting new technologies for productivity         the rice yield performance heavily relied
enhancement (Venkatesh and Davis 2000;             on the series of inputs as has been outlined
Serin et al. 2019).                                in the fundamental production function,
      Despite experiencing significant             the combination of upgraded important
increases in yield over the years, the rice        inputs alongside with the modernization
industry at the same time faced the rising         in cultivation phases were undeniably
cost in production. It has been identified         important (Abidin et al. 2018).
as one of the factors affecting the stagnant             Innovation in new rice variety such as
earning by farmers as the cost increases           hybrid instead of depending on the inbred
offset the yield increases. Over the last 5        type after decades is beyond question.
years, the percentage of cost versus income        Hybrid variety (seed) is known by its
(RM per ha) has shown an increase, which           substantial yield performance as well as
indirectly indicates that the status quo is        have greater resistant ability towards pest
no longer an option in maintaining the             and diseases (Ni et al. 2015). Called as
sustainability and competitiveness of rice         super high yielding rice when first initiated
cultivation in Malaysia (Rahim et al. 2019).       by Japan in 1982, the innovated hybrid rice
For example, there was a 24% increase              which have been developed eight years later
in the cost of production per hectare in           could not be adopted to large areas due
rice cultivation within 3 years, from 2015         to the lack of cold resistance, poor grain
to 2017 at FELCRA Seberang Perak                   quality and low seed setting rate (Chen et al.
(DOA 2015).                                        2007).
      As reported by Khan et al. (2016)                  Later, series of ‘super rice’ (hybrid)
in a study regarding profit efficiency in          by few research institutions such as IRRI
Muda Agricultural Development Authority            and other related rice research institutes
(MADA) in Kedah, most of the farms were            successfully been developed but failed to be
performing on an average however, cost             adopted in the larger fields due to various
efficiency of the farmers was below of the         deficiencies. China took the challenge and
average. In certain national granaries, low        finally produced first generation of ‘super
percentage of Technical Efficiency (TE)            hybrid rice’ by 2005 which yielded 15%
and elasticities (
Hairazi Rahim, Mohd Solihen Jamal, Engku Elini Engku Ariff and Syahrin Suhaimee

Background of the study                              years of experience to achieve F1 seed yield
Hybrid rice is the first generation (F1) rice        at 2.5 t/ha as compared to the beginning of
progeny, derived from crossing between two           its commercial production where the average
genetically distinct rice lines. Generally,          yield was less than 0.5 t/ha in the late 1970s
hybrid rice is bred to increase yield                (Virmani et al. 2002).
potential, disease resistance and grain quality            Generally, hybrid rice has the potential
through the exploitation of a biological             to increase yield by 15 to 20 percent
phenomenon known as heterosis where the              per hectare as compared to the inbred
performance of the first offspring better than       variety. Thus theoretically, the cultivation
both parents. In China, this technology has          of hybrid rice will benefit farmers with
been proven to have a 20% yield advantage            more monetary benefits. For example,
over inbred rice (Yuan 2004). Meanwhile              a farmer group in West Nusa Tenggara
for other countries, the yield advantage of          Province, Indonesia claimed that they have
hybrid rice over inbred variety was about            experienced an increase of income up to 30
15 - 20 percent (Virmani 2003). Thus, this           percent compared to the inbred cultivation
technology could be an alternative in the            previously (Indra and Muhammad 2019).
efforts to increase the yield performance in         However, the agronomic practice for hybrid
our cultivated land. According to Xie and            rice cultivation is slightly different from the
Hardy (2009), in 2007 it is estimated that           inbred such as on the seed rate, transplanting
2.8 million hectares of commercial rice              method and fertilizer rate.
hybrids were grown in the countries outside                According to FAORAP and APSA
of China, namely Bangladesh, Brazil, India,          (2004), considerations for adoption of
Indonesia, the Philippines, Vietnam and the          hybrid rice are seed costs, quantity of seed
United States.                                       required, quantity of complementary inputs
      There are two main important elements          required, labour requirements, yields, output
in hybrid rice technology development                price, and risk preferences and subjective
namely variety and seed production. Once             probabilities. Therefore, cultivation of
the variety is ready, the seed producer has          hybrid varieties is expected to have cost
to produce the hybrid seed on a large scale          implications especially for the seed price,
for commercial hybrid cultivation by the             labour and additional fertilizer. Prior to
farmers. Apart, analysis of the economic             that, valuation needs to be carried out in
viability of the hybrid seed production is           determining the economic feasibility of
an important indicator in ensuring that the          hybrid rice cultivation before it can be
viability of hybrid rice seed production is          implemented by farmers.
applicable in field (Dalrymple 1986). The                  The first hybrid rice variety has
surplus benefits (yields per hectare) that           successfully been developed and launched
exceeds the cost is to ensure the production         by Malaysian Agricultural Research
of hybrid rice seeds is economical to                and Development Institute (MARDI) in
implement.                                           2019 namely KADARIA 1. It is an early
      The process of hybrid rice seed                maturing variety that can be harvested
production is complex and strict, with low           between 104 to 106 days after sowing.
efficiency and high labor cost (Singh et al.         The amylose content is intermediate
2018). All of these factors have resulted in         with medium-hard gel consistency which
high prices of hybrid rice seed. In addition,        corresponds to flaky rice texture after it is
it requires specific skills and experience           cooked. This variety is resistant to leaf and
from various practices in order to maximize          panicle blast but moderately susceptible
the returns while minimizing the cost in             to bacterial leaf blight, sheath blight, rice
production. China, for instance took many            tungro diseases, and brown plant hopper.

                                                                                                      23
Moreover, this variety has been introduced              total cost of production including variable
among the farmers in Kemubu Agricultural                costs to look at the feasibility of a project
Development Area (KADA) due to its good                 over a period of time (Ariff et al. 2011).
performance in the semi-fertile area.                   The results from the CBA exercise should
      The introduction of such new                      provide a comparison of revenue and cost
technology must come along with                         of rice cultivation per hectare using hybrid
economic information through benefit cost               rice. For the financial analysis, the cash flow
analysis and market pricing projection of               statement for the viability of the rice project
KADARIA 1 seed in order to help farmers                 over a period of 10 years was performed.
in making their decision before adopting                Based on these cash flow statements,
the technology. Thus, this study was carried            calculations for financial analysis such as net
out to determine the production cost and                present value (NPV), internal rate of return
net return from the cultivation of hybrid               (IRR), Capital Return Period (CRP) as well
rice and hybrid seed production. A good                 as BCR, can be obtained (Table 1).
variety selection alongside with the proper                    Furthermore, this exercise also
management in every cultivation phase                   included the hybrid seed production’s
including levelling, seeding, fertilizer                viability evaluation covering 2 scenarios;
application, pests and diseases management              the production of certified seeds by MARDI
until harvesting stages will determine the              and also by private companies. Production
yield performance in rice cultivation. The              cost’s data consists of fixed and variable
analysis will feed the necessary information            costs (operating costs). Fixed costs are
for the farmers to consider while helping the           development costs or capital costs that
policy makers in steering the industry to a             do not change with the production value.
better direction.                                       The variable cost refers to the direct cost
                                                        involved in the production of rice seed and
Methodology                                             varies according to the level of production.
The main analytical framework of the study              Among these costs are the cost of pesticides
relied on the calculation of the performance            for the control of diseases and insects,
in Benefit Cost Ratio (BCR) to provide                  fertilizers and wages of workers.
a useful guidance in investment decision                       The survey data for financial analysis
model by policy makers and farmers. BCR                 of hybrid rice cultivation was obtained
estimation under the Cost Benefit Analysis              from the Local Verification Trial (LVT)
(CBA) is used by the internalization of                 plots from different sites. The trials

Table 1. Item Description of Financial Viability Analysis

No.     Trial Site             Granary Area                           Trial Season
                                                             Season 1                Season 2
1       Tanjung Karang,        IADA Barat Laut       August-December 2018      February-June 2019
        Selangor               Selangor
2       Arau, Perlis           MADA                  October2018-February          April-August 2019
                                                     2019
3       Sanglang, Perlis       MADA                  October 2018-February         April-August 2019
                                                     2019
4       Mulong, Kelantan       KADA                  January-May 2019              June-October 2019
5       Teratak Pulai,         KADA                  January-May 2019              July-November 2019
        Kelantan
Note: Integrated Agricultural Development Area (IADA), Muda Agricultural Development Authority (MADA) and
Kemubu Agricultural Development Authority (KADA)

24
Hairazi Rahim, Mohd Solihen Jamal, Engku Elini Engku Ariff and Syahrin Suhaimee

were carried out in 5 sites including few                   Results and Discussions
areas in Muda Agricultural Development
Authority (MADA), Kemubu Agricultural                       Determining the Price of KADARIA 1
Development Authority (KADA) and                            Hybrid Seed
Integrated Agricultural Development                         An evaluation was conducted to look at the
Authority (IADA) Barat Laut Selangor as                     viability of hybrid rice seed production.
can be seen in Table 2.                                     This could lead the seed producer company
      Meanwhile, the information for                        to estimate the optimum selling price. The
hybrid seed production financial analysis                   analysis shows that the minimum price of
was obtained from the KADARIA 1 seed                        hybrid foundation seed is at 41 per kg for
production plots at MARDI Seberang Perai                    the further level of producing the certified
as can be seen in Table 3. In analyzing                     seed. This minimum price is calculated
the production costs and returns of rice                    by taking into account the minimum BCR
farmers in hybrid rice cultivation, there                   of producing approximately 400 kg of
are some differences that need to be taken                  foundation seed per hectare with the total
into consideration. This is because the use                 cost of RM12,038 per ha.
of hybrid rice requires the farmers to use                        The cost structure shows that 81.14%
the method of transplanting in cultivating                  of total production cost was used as a
the rice. As such, there is an increase in                  labor cost while the remain as input cost.
the cost of seed preparation and planting                   This means that, only one fifth of the total
phases compared to the use of inbred                        production cost for foundation seed is
seeds that commonly implemented direct                      for input where most of the cost goes to
seeding method.                                             the labor. As reported by Khushik et al.
                                                            (2011), it is more expensive in producing

Table 2. Information of Local Verification Trial (LVT) Sites for KADARIA 1

 Item                        Details
 Gross Income                Yield x price
 Net Income                  Gross income – total production cost
 Total Production Cost       Variable costs + fixed costs + other costs
 Capital Return Period       The amount of time it takes to recover the original investment capital issued.
 (CRP)                       The shorter the time it takes to recover the original capital, the better.
 Benefit Cost Ratio          Obtained by dividing the total income during the project by the total
 (BCR)                       expenditure. BCR value shows the rate of return per RM invested. If the
                             value of BCR exceeds 1, then the project will benefit.
Source: Ahmad (2008), Žižlavský (2014) and Zulkifli et al. (2016)

Table 3. Seed Production Phases for KADARIA 1

 Phases                     Variety/lines                     Season
 Nucleus seed               0025A, 0025B, 004R                Off Season 2019
 Breeder seed               0025A, 0025B, 004R                Off Season 2019
 Foundation seed            0025A, 004R                       Off Season 2019
 Certified seed             KADARIA 1                         Off Season 2019

                                                                                                           25
the hybrid foundation seed as compared to                   Estimated Benefits from KADARIA 1
the conventional inbred varieties. This was                 Adoption
driven by the complicated production phases                 The partial budgeting was done to estimate
in hybrid since it involves the multiplication              the benefits and implications of hybrid
of parental lines including cytoplasmic male                variety as compared to inbred. The analysis
sterile (CMS), maintainer and restorer (Mao                 was done under two assumptions; with and
et al. 1998).                                               without subsidy for the cost of seed. The
      With the production costs is above                    data was obtained from the experimental
RM14,000 per ha, it is impossible to sell the               plot as mentioned above. The analysis was
certified hybrid rice seed at a price less than             based 10 ha of rice cultivation by comparing
RM22.29 per kg (subsidy value as applied                    hybrid and inbred variety.
to the current inbred variety is included in                      The comparison between two farmers
the suggested price), either being produced                 that planted hybrid and inbred seed that
by MARDI or potential private company.                      owned the cultivation area and using
The cost structure also showed a high                       transplanting method can be seen in the
percentage of labor costs for both MARDI                    Table 5 below. The gross yield for hybrid
or private production at 59.41 per cent and                 was estimated higher at 1,083 kg per hectare
55.06 per cent respectively. The production                 and the benefits gain by farmers for 10 ha of
of hybrid rice certified seed at 680 kg per                 cultivation was at RM16,894.80 per cycle.
hectare is expected. As reported by He et al.               If the assumption for hybrid seed cost is
(1987) and He et al. (1988), the early years                applied at RM22.29 per kg, the cost for
of hybrid rice certified seed production in                 hybrid seed per ha is at RM891.60 per ha
China were between 0.375 to 1 tonne per ha                  as compared to the price of inbred seed at
(Table 4).                                                  RM262.50 per ha. Farmers need to spend
      If the price is set at RM22.29 per                    more of RM629.10 if they are planting the
kg for hybrid rice certified seed, the BCR                  hybrid rice.
ratio is expected to exceed the standard                          There is no difference in terms of
minimum rate of more than > 1 which                         operational cost, hence the hybrid seed is
means the minimum benefit can be enjoyed                    counted as an implication to the hybrid
by the producer without considering other                   farmers. The results stated that the total
constraints such as potential environmental                 benefit is higher than the total implications
uncertainty and possible pests and diseases.                at RM797.88 per ha. It showed that hybrid
Furthermore, the capital return period (CRP)                might have a solution in future to increase
is estimated to be in between 2 to 3 years                  farmers’ production as well as increased
if hybrid seed producers are to take up the                 their income. If the government are willing
proposition given.

Table 4. Estimated Cost of Production and Benefits of Hybrid Rice Production

                                                        Production cost (ha)                 Financial viability
                               Yield/     Price
Producer                                                Total     Input      Labor                   CRP
                               ha (kg)    (RM/kg)                                            BCR
                                                        cost      (%)        (%)                     (Years)
               Foundation
MARDI                          400.00     4.60          12,038      12.43       81.14        1.01     2.41
               seed
               Certified
PRIVATE                        680.00     22.29         14,595      38.75       55.06        1.04     2.36
               seed
Note: Proposed foundation seed and certified seed sale price is at a minimum based on production cost and positive
financial viability (Primary data 2019)

26
Hairazi Rahim, Mohd Solihen Jamal, Engku Elini Engku Ariff and Syahrin Suhaimee

to subsidize the hybrid seed at RM15 per               Benefit and Cost Involved in KADARIA 1
kg, farmers will gain more benefits at                 versus Inbred Rice Variety
RM1,089.48 per ha (Table 6). The study                 The benefit cost analysis showed the
suggested approximately 35% to 42%                     cost and return of the rice farmers which
discounted price for subsidized hybrid                 includes the subsidies provided by the
price, KADARIA 1 in reference to the                   government. The results will be reported
percentage amount of subsidy given to the              in 3 scenarios: ’with subsidy’, ‘without
inbred variety.                                        subsidiya’ and ‘without subsidiyb’. These
                                                       scenarios have been presented to show

Table 5. Partial Budgeting for Non-subsidized Hybrid Seed Price (Estimated for 10 hectare)

 Benefit (+)                                            Implication (-)
 Return Increase (RM)                                   Return Decrease (RM/ha)
 Yield higher at 1083kg/ ha*10 ha        10,830
 Rice price (RM/kg)                      1.20
 Rice price subsidy (RM/kg)              0.36
 Total return (RM)                       16,894.8       Total return (RM)                    0
 Cost Decrease (RM)                                     Cost Increase (RM)
 Operational cost                        0              Non-subsidized hybrid seed @         8,916
                                                        RM22.29/kg
Total                                    16,894.8       Total                                8,916
Total benefit                            16,894.8       Total implication                    8,916
Total benefit/hectare                    1,689.48       Total implication/hectare            891.6
Total benefits – Total implications                                                          7,978.8
Benefit per hectare                                                                          797.88

Table 6. Partial Budgeting for Subsidized Hybrid Seed Price (Estimated for 10 hectare)

Benefit (+)                                              Implication (-)
Return Increase (RM)                                     Return Decrease (RM/ha)
Yield higher at 920kg/ ha*10 ha          10,830
Rice price (RM/kg)                       1.20
Rice price subsidy (RM/kg)               0.36
Total return (RM)                        16,894.8        Total return (RM)               0
Cost Decrease (RM)                                       Cost Increase (RM)
Operational cost                         0               Subsidized hybrid seed @        6,000
                                                         RM15/kg
Total                                    16,894.8        Total                           6,000
Total benefit                            16,894.8        Total implication               6,000
Total benefit/hectare                    1,689.48        Total implication/hectare       600
Total benefits – Total implications                                                      10,894.8
Benefit per hectare                                                                      1,089.48

                                                                                                        27
that the rice production monetary benefits                  increase in yield might not increase the
will be reduced if the subsidy policy is                    average net income of the rice farmers if
no longer provided to the rice sector. As                   targeted additional yield cannot be achieved.
farmers continue to cultivate the rice without              Significant increase in costs (> RM891.60
incentives from the government, their                       per ha at least) affects the cost benefit
financial flow will probably be decreased.                  ratio and net income of hybrid rice farmers
Currently, the dependancy of rice farmers                   (Table 7).
towards subsidy is to ensure a continuation                       The average cost of hybrid rice
of rice cultivation as part of food security                production is RM4,753.21 (with subsidy)
recommendations. Due to that, the used of                   and RM5,927.61 (without subsidya) when
hybrid seeds though requires the additional                 farmers did not receive any subsidies except
cost for seed preparation and planting was                  for the hybrid seed price at RM15.00 per
aimed to produce higher yield as compared                   kg. Further, the average cost of hybrid
to inbred.                                                  production totally without subsidy even
      Within area of 1 hectare, it is estimated             for the hybrid seed price at RM22.29 per
to produce an average yield of 7.32 metric                  kg would be RM6,219.21 per ha. Hybrid
tonnes per ha. The net production after                     rice, the benefit cost ratio (BCR) showed at
26 percent deduction; farmers will earn                     1.78 (with subsidy), 1.42 (without subsidya)
an average gross income of RM8,446.74                       and 1.36 (without subsidyb), respectively,
per hectare. The average increase in the                    compared to inbred (transplanting) rice
gross yield of the hybrid rice was at 11%                   which shows BCR values at 1.37 (without
higher than the average yield of inbred,                    subsidya) and 1.90 (with subsidy). In terms
but in terms of cost, there was an increase                 of yield, using direct seeding method, inbred
in seed cost (40 kg per ha), as well as                     produce lower yield and with subsidy the
preparation and seeding approaches. Hence,                  BCR value was at 1.98 whereas without

Table 7. Estimated Cost of Production and Return of Farmers by Comparing Hybrid and Inbred Rice
Cultivation

 Item                                                    Transplanting                    Direct seeding
                                                         Hybrid        Inbred             Inbred
 Area (ha)                                               1             1                  1
 Average Yield (tonnes/ha)                               7.32            6.23             5.39
 Net Yield (tonnes/ ha) (26% deduction)                  5.41            4.61             3.99
 Gross Income (RM/ha)                                    8,446.74        7,195.38         6,222.22
 Production Cost (RM/ha)        With Subsidy             4,753.21        3,784.22         3,138.36
                                Without Subsidya         5,927.61        5,250.22         4,604.36
                                Without Subsidyb         6,219.21        -
 Net Income (RM/ha)             With Subsidy             3,693.53        3,411.16         3,083.86
                                Without Subsidya         2,519.13        1,945.16         1,617.86
                                Without Subsidyb         2,227.53        -                -
 BCR                            With Subsidy             1.78            1.90             1.98
                                Without Subsidya         1.42            1.37             1.35
                                Without Subsidyb         1.36            -                -
Note:
a Exclude current subsidies amount received by farmers + subsidized hybrid seed price at RM15.00/kg at a rate of 40

kg per ha
b Exclude current subsidies amount received by farmers + subsidized hybrid seed with the same amount subsidy as

current inbred variety, the price was estimated at RM22.29/kg at a rate of 40 kg per ha

28
Hairazi Rahim, Mohd Solihen Jamal, Engku Elini Engku Ariff and Syahrin Suhaimee

subsidy was at 1.35. The better BCR                        The findings of the economic feasibility
performance for inbred type (with subsidy)           study for hybrid rice cultivation and hybrid
as compared to hybrid, KADARIA 1                     seed production provide important guidance
inevitably due to the lower production cost          especially for policy makers and farmers
specifically in seed cost. However, the BCR          in the rice industry. Rice cultivation using
values (without subsidya and b) were better          hybrid seeds does not have a huge impact
and net income (RM per hectare) from                 on yield performance and farmers will
hybrid production surpassed the inbred in all        experience considerable amount of income
scenarios. Simplified graphics information           surplus. In fact, the benefit cost ratio does
can also be referred as presented in Figure 1        not show a significant difference between
and Figure 2.                                        the use of hybrid rice seeds compared to
                                                     inbred rice varieties.

Figure 1. Cost and Benefit Comparison between KADARIA 1 and Inbred Rice Cultivation with Subsidy

Figure 2. Cost and Benefit Comparison between KADARIA 1 and Inbred Rice Cultivation Without
Subsidya and b

                                                                                                      29
However, the average increase in           between the hybrid and inbred varieties
hybrid rice yields can be considered to be       which were done using the same practices
adopted in those areas with lower average        have portrayed a clear monetary impact if
production values for inbred rice with           farmers were to adopt the KADARIA 1 for
specific hybrid rice agronomic practices for     their rice cultivation. The results stated that,
optimal yield. The hybrid rice cultivation is    farmers that planted using hybrid seed will
suitable for few specific granaries which are    experience slightly higher yield per hectare
considered to be already reached the optimal     with extra total benefits for each hectare of
use of inputs but still unable to increase the   rice cultivation even without the subsidized
yield per hectare. KADARIA 1 is profitable       hybrid seed. If there is no changes of the
enough for those rice growers to opt to. It      current subsidies and incentives framework
can be a very potential alternative when the     from the government, the farmers will reap
average yield can be steadily optimized as       even more monetary benefits if they opted
well as to cope with uncertain environmental     to change from the use of conventional
condition in the near future.                    inbred variety to the hybrid type. However,
      The production of hybrid rice seed is      the changes from inbred into hybrid will be
much more expensive as compared to the           followed by the increase in cost. Therefore,
inbred seeds’ production especially in term      the used of hybrid seed is practical to be
of labor cost at the foundation seed phase as    introduced to farmers or locality with low
well as certified seed production level. As      productivity per hectare and the farmers
reported by Virmani and Kumar (2004), the        must abide strictly with the KADARIA 1
early stages of hybrid rice seed production      cultivation manual and procedures.
will have such obstacles especially in the
aspects of the increasing labor cost and         References
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Abstrak
Inovasi terbaru padi hibrid yang dikenali sebagai KADARIA 1 telah dihasilkan
dan prestasi hasil varieti ini telah dinilai di jelapang-jelapang terpilih di
Semenanjung Malaysia. Walaupun teknologi varieti ini telah dikembangkan
selama lebih daripada 30 tahun di negara lain, teknologi ini masih baru di
Malaysia kerana 10 tahun kebelakangan ini baru diterokai. Varieti hibrid
menyumbang kepada peningkatan dalam prestasi hasil padi, oleh yang demikian
banyak negara melabur secara intensif dalam mengembangkan pakej benih padi
hibrid yang lebih maju untuk petani mereka. Perlu diperhatikan bahawa kos
pengeluaran benih hibrid lebih tinggi jika dibandingkan dengan varieti inbred.
Di samping itu, margin keuntungan yang tersekat kerana kecekapan teknikal
yang rendah dan penurunan kembali ke skala keanjalan bagi sejumlah jelapang
nasional serta kenaikan kos pengeluaran dalam penanaman padi memerlukan
pertimbangan kritikal agar alternatif baru dapat diterokai. Oleh itu, kajian ini
berusaha untuk menentukan potensi faedah sekiranya padi hibrid ini akan diguna
pakai di jelapang-jelapang tersebut susulan varieti beras hibrid pertama berjaya
dihasilkan iaitu KADARIA 1. Walau bagaimanapun, didapati bahawa usaha awal
untuk menggunakan hibrid di jelapang agak sukar kerana prestasi hasil (7.32 tan/
ha) yang tidak berbeza secara signifikan berbanding dengan inbred (6.23 tan/
ha). Tambahan lagi, nisbah faedah kos (BCR) tidak menguntungkan sekiranya
petani menggunakan KADARIA 1 untuk sawah mereka. Margin keuntungan
menurun sebaik sahaja harga benih hibrid tidak disubsidi pada RM15.00/kg
daripada anggaran asal harga komersial pada RM22.29/kg, yang menunjukkan
perlunya kerajaan memberi subsidi benih apabila petani memilih untuk menanam
hibrid. Walaupun prestasi hasilnya tidak signifikan seperti yang dinilai dalam
kajian ini, penerokaan dalam pengembangan padi hibrid masih sangat penting
memandangkan kemampuan varieti jenis ini yang lebih tahan terhadap perosak
dan penyakit. Kajian mendapati bahawa penggunaan hibrid dalam penanaman
padi dan pengeluaran benih berpotensi dilaksanakan ke jelapang hanya jika
beberapa syarat dan peningkatan dapat dipenuhi. Ini dapat dilakukan sama ada
melalui peningkatan prestasi hasil yang signifikan atau penghasilan benih hibrid
secara ekonomi; atau kedua-duanya.

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